Conquer Club

I am a young man, so I don't quite understand how exactly the Stock Market can crash. Can someone please explain it to me? Generalities are fine.

People put money into the stock market. Companies use this money which does all sorts of things and drives the economy. When people get scared and sell their stocks, now there's no more money in the stock market for the companies to use. Stock market crashes, due to not having any money, companies bankrupt and we go into a recession. If the recession is really bad, we go into a depression (see the Great Depression of 1929).

Yes I see...so it's our pusillanimous acts that put us where we are?

ParadiceCity9 wrote:Yes I see...so it's our pusillanimous acts that put us where we are?

Interesting, isn't it? But, after all, what is the economy but something entirely of human creation?